Chapter 8_2: Output and Costs

Chapter 8_2: Output and Costs; Time: 40 phút

Question 1 - 9

Question 1: In the above figure, the average product of labor at point c is
a. 5
b. 2
c. 10
d. None of the above answers are correct.

Question 2: In the figure above,
a. f is an efficient point.
b. g is an efficient point.
c. d is an efficient point.
d. there are no efficient points.

Question 3: In the above figure, an inefficient point is
a. a.
b. f.
c. g.
d. e.

Question 4: In the above figure, an unattainable point is
a. a.
b. e.
c. f.
d. g.

Question 5: In the above figure, the most efficient way to produce 10 units is to hire
a. 1 worker.
b. 5 workers.
c. 2 workers.
d. 3 workers.

Question 6: In the above figure, the most efficient way to produce 15 units is to hire
a. 5 workers.
b. 3 workers.
c. 4 workers.
d. 2 worker.

Question 7: In the above figure, the maximum number of units that 4 workers can produce is
a. 15 units.
b. more than 15 units.
c. 5 units.
d. 10 units.

Question 8: In the above figure, the marginal product of labor is zero at point
a. a.
b. f.
c. e.
d. c.

Question 9: At point e in the above figure, the marginal product of labor definitely
a. is at its maximum.
b. is less than the average product of labor.
c. equals the average product of labor.
d. is greater than the average product of labor.

Question 10: The steeper the slope of the total product curve, the
a. more efficient is the technology employed.
b. higher is the level of the total cost curve.
c. larger is the marginal product of labor.
d. smaller is the marginal product of labor.

Question 11: Increasing marginal returns to labor might occur at low levels of labor input because of
a. differing factor proportions.
b. decreasing use of machinery and increasing use of technology.
c. increasing average costs.
d. increasing specialization of tasks.

Question 12: In general, increasing marginal returns occur
a. as output expands at high levels of production.
b. whenever the slope of the total product curve is positive.
c. as output expands at low levels of production.
d. through the entire range of production.

Question 13: "Diminishing marginal returns" refer to a situation in which the
a. average cost of the last worker hired is less than the average cost of the previous worker hired.
b. marginal cost of the last worker hired is less than the marginal cost of the previous worker hired.
c. average product of the last worker hired is less than the average product of the previous worker hired.
d. marginal product of the last worker hired is less than the marginal product of the previous worker hired.

Question 14: The law of diminishing returns implies that, with the use of capital fixed, as the use of labor rises,
a. the marginal product of labor will fall eventually.
b. total product will fall eventually.
c. the production process will become technologically inefficient eventually.
d. the total product of labor will fall below the marginal product of labor.

Question 15: The law of diminishing returns states that as
a. a firm uses more of a variable input, given the quantity of fixed inputs, the firm's average total cost will decrease eventually.
b. the size of a plant increases, the firm's fixed cost decreases.
c. a firm uses more of a variable input, given the quantity of fixed inputs, the marginal product of the variable input eventually diminishes.
d. the size of a plant increases, the firm's fixed cost increases.

Question 16: If a firm's marginal product of labor is less than its average product of labor, then an increase in the quantity of labor it employs definitely will
a. not change its average product of labor.
b. decrease its average product of labor.
c. increase its marginal product of labor.
d. decrease its total product.

Question 17: Total cost is the sum of fixed costs and
a. implicit costs.
b. accounting costs.
c. explicit costs.
d. variable costs.

Question 18: A firm has fixed costs
a. in the short run but not in the long run.
b. in the long run but not in the short run.
c. in the short run and in the long run.
d. neither in the long run nor in the short run.

Question 19: Total fixed cost is the sum of all
a. costs associated with the production of goods.
b. explicit costs.
c. costs of the firm's fixed inputs.
d. costs that rise as output increases.

Question 20: Total variable cost is the sum of all
a. implicit costs.
b. costs of the firm's fixed inputs.
c. costs that rise as output increases.
d. costs associated with the production of goods.

Question 21: A firm's marginal cost is the increase in its total cost divided by the increase in its
a. output.
b. average cost.
c. average revenue.
d. quantity of labor.

Question 22: Marginal cost is
a. all the costs of production of goods.
b. all the costs of the fixed inputs.
c. the change in the total cost resulting from a one-unit change in output.
d. all the costs that vary with output.

Question 23: Marginal cost is calculated as
a. the increase in total cost divided by the increase in labor, given the amount of capital.
b. total cost minus total fixed cost.
c. total cost divided by output.
d. the increase in total cost divided by the increase in output.

Question 24: A company could produce 99 units of a good for $316 or produce 100 units of the same good for $320. The marginal cost of the 100th unit
a. is $320.
b. is $3.20.
c. is $4.00
d. cannot be calculated with this information.

Question 25: A company could produce 100 units of a good for $320 or produce 101 units of the same good for $324. The $4 difference in costs is
a. the marginal benefit of producing the 101st unit.
b. the marginal cost of producing the 101st unit.
c. both the marginal benefit and the marginal cost of producing the 101st unit.
d. neither the marginal benefit nor the marginal cost of producing the 101st unit.


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